3. County/City General Budget and Final Accounts Summary:
(1) Self-Financed Funds for the Past Five Years
The self-financed funds of all counties and cities recorded in the final accounts of the second half of 1999 and 2000 amounted to $230,141,865,000 (one year equivalent). The amount fell by 5.08% in final accounts of 2001, grew by 5.24% in the final accounts of 2002, grew by 3.41% in budget of 2003 and fell by 0.64% in budget of 2004, recording an average of 0.73%. The percentage of self-financed funds fell significantly from 62.76% recorded in the second half of 1999 and 2000 to 28.68% planned in the budget of 2004, indicating that they are relying more and more on funds from higher authorities. After offsetting the annual expenditure against the annual revenue, the shortfall is financed with bonds and loans. The shortfall rose from $43,746,761,000 as recorded in the final accounts of the second half of 1999 and 2000 to $107,236,390,000 planned in the budget of 2004. According to the above statistics, as income increased in the past five years, self-financed funds decreased. Aggravated by failure in reducing expenditure, counties and cities are becoming more and more dependent on the subsidies and supplements from higher authorities. Generally speaking, all county/city governments’ finances are deteriorating.
(2) Annual revenue for the Past Five Years:
The annual revenue recorded in the final accounts of the second half of 1999 and 2000 is $327,616,921,000 (one year equivalent). The figure grew by 26.95% in the final accounts of 2001, -2.74% in the final accounts of 2002, 9.15% in the budget of 2003 and 7.70% in the budget of 2004, registering an average growth of 10.27%. Taxes are the number one source of income, accounting for 57.34% of the total annual revenue registered in the final accounts of the second half of 1999 and 2000. The percentage dropped to 40.32% in the budget of 2004. Subsidies and assistance revenues were the secondary income, accounting for 29.75% of total annual revenue registered in the final accounts of the second half of 1999 and 2000. The percentage rose to 50.32% in the budget of 2004. Generally speaking, though annual revenue grows over the years, the percentage of self-financed funds is dropping. Most of them are depending heavily on funds from higher authorities, which is an indication of deteriorating finances.
(3) Annual expenditure for the past five years:
The annual expenditure registered in the final accounts of the second half of 1999 and 2000 is $391,096,388,000 (one year equivalent). The figure grew by -15.92% in the final accounts of 2001, -5.76% in the final accounts of 2002, 6.32% in the budget of 2003 and 8.31% in the budget of 2004, showing an average growth of -1.76%. The percentages of individual annual expenditure to the total annual expenditure in descending order are: education, science and culture; expenditures for economic development; social welfare; general administration; police administration; retirement and compassionate aids. The percentages of expenditures for education, science and culture, general administration, and police administration are falling. The percentage of expenditure for education, science and culture fell from 40.26% in the final accounts of the second half of 1999 and 2000 to 36.99% in the budget of 2004, which is the most significant drop of the three. All other percentages have been rising. Generally speaking, annual expenditure has been rising over the years. With the condition deteriorating income, the finances of counties and cities are becoming worse.
(4) Personnel expenditure for the past five years:
Personnel expenditure recorded in the final accounts of the second half of 1999 and 2000 is $243,499 million (one year equivalent). The figure grew by 6.88% in the final accounts of 2001, 7.30% in the final accounts of 2002, 4.47% in the budget of 2003 and 1.75% in the budget of 2004, carrying an average growth of 5.10%, which indicates rising personnel expenditure. The percentage of personnel expenditure to the total annual expenditure fell from 62.06% as recorded in the final accounts of the second half of 1999 and 2000 to 55.45% in the budget of 2004. Counties (cities) with percentages exceed 60% are: Changhua county, Kaohsiung county, Tainan city, Taichung city, Pingtung county and Chiayi city. Jinmen county and Lianjiang county are the only ones having percentages less than 30%. Personnel expenditure still accounts for a large portion of the total annual expenditure.